Crypto-market ‘not mature enough’ for decentralized exchanges
eToro’s Yoni Assia believes that the market is not mature enough for Decentralized Exchanges [DEX]. The CEO and co-founder of eToro appeared in a podcast for Epicenter where he noted that decentralized exchanges have certain precursors to be a success and it was early for eToro to venture into it. Assia said:
“So, I love the concept of decentralized exchanges. The problem is I don’t think the market is mature enough for those products from a user experience point of view.”
Assia was of the view that while user experience will take more time to perfect itself and become usable for the market, market would mature simultaneously. Criteria for the smooth functioning of decentralized exchanges that need to be met is to have multiple assets on top of one specific blockchain; another requirement is creating liquidity in the traditional form. Assia stated:
“When we looked at building eToroX, we came to the conclusion that it still in its infancy and therefore, there should be first a bridge between centralized exchanges. So, creating liquidity, in the traditional form between traditional markets, centralized services on top of crypto and then moving to what we call as decentralized finance or basically, non-custodial financial solutions.”
With Dex on hold, for now, eToro has been working toward integrating DeFi products on its platform. DeFi [Decentralized Finance] leverages from decentralized networks to transform old products into a trustless and transparent protocol.